Telecoms tariff hike: CSOs shelve planned protest, gives reason

The National Civil Society Council of Nigeria (NCSCN) has called off its planned protest over the recent increase in telecom tariffs. This comes as the NCSCN announced it would embark on further consultations and sensitization on the facts and figures before it, considering the realities on the ground from all sides.

Addressing journalists in Abuja, the Executive Director of NCSCN, Ambassador Blessing Akinlosote, explained that after a meeting with the Nigerian Communications Commission (NCC), a five-man technical committee was set up to study the document presented by the NCC.

Akinlosote further noted that the leadership of NCSCN, having carefully conducted a forensic analysis of the available facts and figures, sympathized with the NCC over the dilemma it faces. He stated that after studying the document, it was realized that there had not been any tariff adjustment by operators since 2013, despite rising inflation and unfavorable economic conditions.

He added that, like every other local and international business, telecom operators rely on essential factors and variables such as electricity, foreign exchange, and a secure environment to operate profitably. However, electricity tariffs and the cost of diesel have skyrocketed, affecting telecom service providers. Insecurity and the constant vandalization of facilities and cable lines have become recurring threats to the continued operation and profitability of telecom businesses in Nigeria.

Akinlosote clarified that the 50% increase is simply an upper ceiling that must not be exceeded, as operators may still be driven by competition to make slight adjustments rather than implementing the full increase. He further explained that as factors such as electricity, diesel prices, and security improve, rates will naturally come down, as has been the trend in the industry for over two decades, during which call and service rates have steadily declined.

He also pointed out that the NCC has issued detailed and comprehensive terms and conditions for service improvement nationwide, along with industry reforms that favor consumers. These require structural and equipment upgrades by service providers, which will lead to a significant improvement in telecom services across Nigeria. Additionally, service providers are mandated to adhere to the guidelines and terms before making any upward tariff adjustments.

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Akinlosote emphasized that the 50% approval is understandable, considering the percentage rise in forex, diesel, and other variables, some of which have increased by up to 700%. Despite this, Nigeria still enjoys relatively low telecom tariffs compared to global standards.

The NCSCN, however, urged the NCC to ensure that the agreed terms and conditions with telecom service providers are strictly adhered to without compromise, emphasizing the urgent need for improved service quality and coverage. It also recommended that the NCC enhance its monitoring mechanisms to verify and regulate the actual tariff rates of various service providers, ensuring periodic public disclosures of their operations.

Furthermore, the NCSCN called on telecom service providers to show greater patriotism by charging the lowest possible tariffs rather than implementing the full 50% increase, prioritizing the interests of consumers. It also urged the Federal Government to declare a state of emergency in the energy sector and implement measures to improve national security while working towards reducing forex rates in favor of the naira, as these factors are the primary causes of high production costs and business challenges in the country.

Finally, Akinlosote called on citizens and all residents of Nigeria to exercise more patience and make sacrifices towards revamping the national economy, which the current government inherited, expressing optimism that things will improve in the near future. He also appealed to the Nigerian Labour Congress (NLC) to reconsider its position on this matter and allow for this unavoidable tariff adjustment to prevent the collapse of telecom services in Nigeria, as many businesses are already shutting down and leaving the country due to high production costs.